Cerro Los Leones
In December 2010, acquired a 50.1% interest in and operatorship of the 307,215 acre Cerro los Leones exploration concession, located in Argentina's Neuquén Basin.
Cerro los Leones is situated in the northern portion of the Neuquén Basin in the Province of Mendoza. The existing 2-D seismic coverage of 700km provides regional control and has identified numerous lower Tertiary and Cretaceous structural and stratigraphic leads at drilling depths of between 1,500 and 2,500 metres. Subsurface control is provided by seventeen previously drilled wells, which indicate the presence of reservoir, source and seal rock at multiple horizons. Sixteen of these wells reported oil and gas shows, with one flowing medium gravity oil at rates of up to 350 bopd on extended test. The region boasts easy access and is close to infrastructure.
Based on published reserve records of the Secretaría de Energía of Argentina, producing oil fields adjacent to and on trend with the Cerro los Leones Licence typically have ultimate recovery estimates of between 15 and 30 million barrels, with up to 500,000 barrels per well. Antrim will apply for inclusion of production from the Cerro los Leones concession in the Gas and Oil Plus incentive programs in Argentina, which provide for higher prices than other Argentine production earns.
The concession provides for a state royalty of 16% and carries an obligation to the government to acquire seismic data and drill up to five wells during a three year exploration period. The cost of the work commitment to the province is valued at US$13.85 million (net to Antrim - US$6.94 million).
